Quote Quoting flyingron
View Post
A family member is going to be considered an insider, but if the payback was six months (actually the cutoff is typically three months) before the filing, they are generally safe.
If you paid them closer to the filing (or after it was filed), it would indeed be bad for you (you may lose bankruptcy protection) and for them (the court may order the improper payments returned).

The pension loan is protected, but that's immaterial. The issue is an improper payment to an insider regardless of where you got the money to pay them.
Understand this is not about being fair to YOU or to your RELATIVES. It's about protecting the creditors you're about to SCREW. The trustee represents their interests.
the trustee can and will sue a family member if they were paid back. Is there anyway around this. I paid a family member ($20,000) back using a pension loan about 6 months ago which I will continue to pay even through the bankruptcy if approved? If it's a loan that can't be touched in bankruptcy, how can they sue a person for it?

Any insight would be helpful.

Quote Quoting DENIMKATY
View Post
the trustee can and will sue a family member if they were paid back. Is there anyway around this. I paid a family member ($20,000) back using a pension loan about 6 months ago which I will continue to pay even through xender discord omegle the bankruptcy if approved? If it's a loan that can't be touched in bankruptcy, how can they sue a person for it?

Any insight would be helpful.
A family member is going to be considered an insider, but if the payback was six months (actually the cutoff is typically three months) before the filing, they are generally safe.